Is a Buona franchisee allowed to create their own gift card or loyalty program?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees:
(a) to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
(b) not to offer for sale or give away any form of Gift Card or Loyalty Program other than the Official Gift Card/Loyalty Program;
(c) not to create Franchisee's own Gift Card or Loyalty Program;
(d) to accept and honor the Official Gift Card/Loyalty Program in exchange for product when presented for redemption at Franchisee's Store;
(e) to obtain and maintain whatever is the currently designated equipment and/or software necessary to process the authorized Gift Cards/Loyalty Program, which may be through a Mobile Application; and
(f) to comply with any policy promulgated by Franchisor regarding changes to the form and use of Gift Card/Loyalty Program, including transition periods for the phasing in of modifications to the Official Gift Card/Loyalty Program.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from creating their own gift card or loyalty programs. Instead, franchisees must offer the official gift card and loyalty program designated by Buona. This program must be offered in the form and version that Buona specifies, and franchisees must accept and honor the official program at their store.
To participate in the official program, franchisees must obtain and maintain the equipment and software necessary to process the authorized gift cards and loyalty program, which may include a mobile application. Franchisees are also required to comply with any policies that Buona promulgates regarding changes to the form and use of the gift card and loyalty program, including any transition periods for phasing in modifications.
This policy ensures uniformity across all Buona locations and helps maintain brand consistency. By mandating the use of a single, official program, Buona can control the customer experience and ensure that all franchisees are adhering to the same standards. This also allows Buona to manage and update the program centrally, making it easier to implement changes and track performance.
For a prospective franchisee, this means they must be prepared to invest in the required equipment and software and adhere to Buona's policies regarding the gift card and loyalty program. They will not have the flexibility to create their own programs or customize the existing one. It is important to understand the costs associated with the official program and the potential impact on customer loyalty and sales.